Question on: JAMB Accounting - 2021

Use the information below to answer the question

Gross profit b/d
Less: Salaries and wages
Electricity
Depreciation
Net profit c/d

Dept A
₦
6,000
1,800
?
600
?
6,000

Dept B
₦
4,000
1,200
?
?
1,600
4,000

Total
₦
10,000
3,000
2,000
1,000
4,000
10,000

It is the tradition of the organization to apportion expenses in the proportion 60%:40% for A and B respectively.

What is the net profit made by department A?

₦2000

₦3600

₦3000

₦2400

Ask EduPadi AI for a detailed answer

Correct Option: D

Here's how to determine the net profit for Department A: 1. **Calculate the total expenses:** The total expenses for both departments are Salaries and Wages (₦3,000), Electricity (₦2,000), and Depreciation (₦1,000). Therefore, the total expenses are ₦3,000 + ₦2,000 + ₦1,000 = ₦6,000. 2. **Apportion the expenses:** Since expenses are allocated in a 60:40 ratio for Departments A and B, we can calculate Department A's share of the expenses: ₦6,000 \* 60/100 = ₦3,600. 3.